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The aim of this study is to assess empirically to what extent the degree of heterogeneity of consumers’ inflation … techniques. We find that the degree to which consumers’ expectations are discordant is negatively related to news intensity …. Moreover, the results suggest that the absolute bias in expectations decreases as news become more intense and this effect has …
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The paper analyses the anchoring of inflation expectations of professional forecasters and consumers in the euro area. We study anchoring, defined as the central bank’s ability to manage expectations, by paying special attention to the impact of the ECB inflation target and ECB inflation...
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